David Einhorn’s Comments at the Greenlight Re (GLRE) Investor Day on May 20th 2014

• Bernanke was predictable, but the new chairwoman is less predictable.
• It has been 5 yrs into the recovery. Corporate profits have increased a lot and continue to grow. Current earnings expectations are high at a double-digit growth rate. Q1 numbers are showing the economy growing at  ~1%.
• The fund is fully invested at 114% long and 66% short. It has increased its net long book from 35 to 50%.
• Largest longs are Alpha Bank, Apple, gold, Marvel, Micron, and Oil States International.
• Longs are cash-rich tech companies and businesses benefiting from structural changes. Shorts include secular decliners, momentum stocks, and iron ore related companies. Macro overlay due to monetary policy and unresolved imbalances.
• Divergence between stock and bond markets?  Bond market is saying that economy is slowing down and yields have come down. Yields are not down because of deflation – we are not in deflation as commo

Sometimes it pays to simply remove the distraction of moving averages and let the chart movement speak for itself.  What say you StockBuz?  Are those head-and-shoulders bottoms or no?  Long gold and silver (and miners) with a stop below last weeks low (to your tolerance).  Partial on a breakout, move up stops to b/e, final target equal to distance of head to breakout zone.  Call it flight to safe havens, call it massive short covering/profit taking, .  Who cares.  The risk/reward is irresistible.